SPX chart and some words...

As we await the German vote on the 'European Financial Stability Facility' (AKA another finger in the dike) we realize that the weekly SPX has not yet broken down and remains in something of a sloppy Bear Flag, working its way upward.

Daily charts show the flag rounding into a mini recovery topping pattern.  But if the market can trumpet some happy sounding stuff out of Europe, who knows?  Maybe the top of the flag can be approached once again.  Regardless, this market is broken.

CNBC has some robots touting that the USA will avoid the bulk of the problems from Europe (as if we do not have our own obfuscated, but deeply embedded problems of our own.  Last night a robot said Emerging Markets will get killed and one should employ a long US, short EM's strategy.  No thank you sir.  The EM's look terrible technically, but that will be the play at the appropriate time; not so much US, not Europe.  Not played out, debt choked, mature entities.

Ultimately, I think 900 - 1000 beckons for SPX with some patience.

Edit (10:00) Ouch... but not really.  Today is why I do not go net short.  Just try to balance.   And no, I don't buy it.  The broad markets are bearish until further notice (which would be given by altered technicals).

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